Commons Financial Privilege Debate

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Department: Leader of the House

Commons Financial Privilege

Peter Bone Excerpts
Wednesday 28th October 2015

(8 years, 6 months ago)

Commons Chamber
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Chris Grayling Portrait Chris Grayling
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Let us be clear to the House—this is a very simple matter—that tax credits are officially categorised as a benefits matter and not a tax matter. If one puts a change to tax credits into a Finance Bill, that Bill will not necessarily be certified as a money Bill. That is the state of play and the reality of what we are dealing with. That is why the tax credits measures were not in a Finance Bill.

Peter Bone Portrait Mr Peter Bone (Wellingborough) (Con)
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Has not the Leader of the House just said why the Lords were entitled to amend the statutory instrument? They did not reject it but delayed it because it clearly was not a tax measure. If it had been a tax measure, we would have put it in the Finance Bill. We are seeing a knee-jerk reaction to the House of Lords doing what it is supposed to do. I am all for a review, but let us have a proper review and take our time over it. Will my right hon. Friend reflect on that and announce more than just Lord Strathclyde heading a review?

Chris Grayling Portrait Chris Grayling
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It is absolutely essential that we do not rush this. We have said that there will be a panel of people working with Lord Strathclyde. Their names will be announced in due course, but I remind my hon. Friend that a statutory instrument has been rejected by the House of Lords in that way only five times in the past century. This is the first time that it has happened to a specifically budgetary measure. That is the important change.